Friday, March 29, 2024 | Ramadan 18, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

It’s time to reward good deeds with goodness

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Ali Al Matani -


ali.matani2@gmail.com -


Small and Medium Enterprises (SMEs) play a major role in most economies. They account for up to 60 per cent of total employment and up to 40 per cent of the GDP in emerging economies.


According to World Bank estimates, 600 million jobs will be needed in the near future to employ the growing global workforce, mainly in Asia and Sub-Saharan Africa. In emerging markets, most jobs are generated by SMEs and what hampers their development is access to finance.


Most SMEs rely on internal funds or cash from friends and family to get their enterprise off the ground initially. About half of SMEs don’t have access to formal credit and the gap is larger when micro and informal enterprises are taken into account. Approximately 70 per cent of all micro, small and medium-sized enterprises in emerging markets lack access to credit. This gap is particularly wide in Africa and Asia.


The situation in the SME sector in the Sultanate is not much different. Although there are agencies to encourage development of the sector, there is an overall lack of support from society to the efforts of the entrepreneurs.


The government supports the SME sector and in 2013 set up a Public Authority of Small and Medium Enterprise Development ‘Riyada’ to fulfill its responsibility towards uplifting the sector.


In the same year, Al Raffd Fund was founded as a financial organisation aimed at supporting, encouraging and promoting entrepreneurial growth among the citizens. Its mission is to provide simple, quality financing for business needs. It provides the right guidance and market knowledge required to help the youth convert their vision into reality.


In 1998, Sharakah was established to continue government’s support for entrepreneurs and entrepreneurship in Oman. The closed joint stock company encourages and supports development of entrepreneurs and SMEs. But entrepreneurs require handholding to develop. Bigger companies in various sectors should come forward to help youth in the SME sector.


Again, there is a lack of encouragement from society as members of the public, both nationals and expatriates, prefer to buy foreign products than those made in the Sultanate by the SME sector.


It is this prejudice that needs to be dealt with to encourage the sector.


At a time when the SME sector lends support to social events held in the governorates through donations and sponsoring such events in schools, universities and sport teams, the same organisations meet their needs by buying from hypermarkets than those promoted by these same sectors at a higher cost.


Why don’t these organisations reciprocate this gesture and reward good deeds with goodness? This shows the step-motherly treatment faced by our entrepreneurs. We need to find a way out for SMEs to exist with integrity.


Support for the sector needs to start at home if citizens want to grow a robust economic system in the country and diversify its income.


During most festive occasions, people drive to a neighbouring country claiming goods are cheaper there and have more quality. If we don’t nurture our enterprises and encourage our youth, who will?


Sports clubs buy their gear from outside the Sultanate with the money donated by SMEs. We are availing of their charity and punishing them by not buying their products.


It is time the society realises its strength relies on the support of SMEs and their sustainability depends on members of the society buying their products. It not just words of encouragement that the sector needs; it is action. We have to buy the products that SMEs bring to the market.


We hope the society will be more realistic about supporting entrepreneurs with action and not words, to help the sector bring self-sufficiency and contribute to the march of Renaissance on the occasion of 47th National Day.


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